Which of the Following Statements Related to Market Efficiency Tend

question 29

Multiple Choice

Which of the following statements related to market efficiency tend to be supported by current evidence?
I.Markets tend to respond quickly to new information.
II.It is difficult for investors to earn abnormal returns.
III.Short-run prices are difficult to predict accurately based on public information.
IV.Markets are most likely weak form efficient.

• A)I and III only
• B)II and IV only
• C)I and IV only
• D)I, III, and IV only
• E)I, II, and III only

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Definitions:

Literacy

The ability to read and write at a level sufficient for communication and understanding of text.

Seasonality

Periodic fluctuations in economic or financial activity that recur with similar intensity during the same season of each year.

U.S. GDP

The total market value of all final goods and services produced within the United States in a given period, serving as a broad measure of overall economic activity.

Circular Flow Diagram

A visual model of the economy that shows how money flows through markets among households and firms, illustrating economic interactions.